Calculate the total net present value for cruz electronics

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Reference no: EM132653303

 

2020

2021

2022

2023

EBIT

$2000

$2500

$2800

$2950

Loss Carry Forward (from 2019)

$(1000)

 

 

 

Capital Expenditures

$500

$500

$500

$450

Changes in Working Capital

$40

$(10)

$(20)

$20

Depreciation

$50

$60

$100                   $110

Question 1: Calculate the Total Net Present Value for Cruz Electronics. In determining your answer assume that the NPV of the 2020 though 2023 Free Cash Flow is $4800-million (it's not, but assume that it is). All other information from the Cruz financial projections shown above remains the same (HINT: The EBIT in year 2023 is still $2950 in 2023. You are provided the $4800-million free cash flow only to allow you to get this question correct even if you got the prior question wrong).

[A] $21,762 million

[B] $24,057 million

[C] $19,559 million

[D] $28,857 million

Reference no: EM132653303

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